Wholesale Central Bank Money

Definition ∞ Wholesale Central Bank Money refers to digital money issued by a central bank and accessible only to financial institutions for interbank settlements. It is distinct from retail central bank digital currency, serving as a high-value, restricted-access digital liability of the central bank. This form of money aims to enhance the efficiency and security of wholesale payments. It underpins the financial system’s infrastructure.
Context ∞ Wholesale central bank money is a significant area of research and pilot programs for central banks globally, often discussed in financial news with crypto implications. Reports cover central bank digital currency initiatives focused on improving interbank and cross-border transactions using distributed ledger technology. The discussion centers on its potential to modernize payment systems, reduce settlement risk, and impact financial stability.